ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, February 2, 1995                   TAG: 9502030006
SECTION: EDITORIAL                    PAGE: A-15   EDITION: METRO 
SOURCE: GORDON C. MORSE
DATELINE:                                 LENGTH: Long


ALLEN IS THREATENING A LEGACY OF GROWTH, PROSPERITY

FORMER Gov. Albertis S. Harrison Jr. died last month, and a great many Virginians have no idea who he was. They should. Because the political consensus for economic and cultural growth forged by Harrison and sustained by his successors - a consensus that brought Virginia unprecedented progress over three decades - is under assault.

When Harrison was inaugurated governor in 1962, it was broadly recognized that Virginia had missed the economic boat. Other states and regions were growing, but the commonwealth was, in the words of Richmond Times-Dispatch editor Virginius Dabney, ``stuck in a rut.'' Prevailing wisdom held that low state taxes were sufficient to attract new industry. But Harrison and many other state leaders realized that low taxes alone were not enough.

In the early '60s, Virginia's tax burden wasn't just low - it was dead last in the nation. Likewise, so was the commonwealth's support for public education. No other state in America spent less of its wealth on public schools. Yes, Virginia continued to celebrate the legacy of Thomas Jefferson. But in the percentage of eligible citizens being educated at all levels, Virginia ranked 48th among the 50 states.

That had to change, Harrison believed. Virginia needed an active commitment from state government (meaning money) to the basics of a competitive economy. Personally leading the charge, the governor imposed new priorities on the state budget. Funds were used to improve access to higher education, construct hundreds of new public schools and establish technical schools.

As Harrison aggressively pursued industrial development, Virginians saw the difference. Virginia's economy accelerated; new businesses arrived; individual opportunities expanded. It became the political consensus that worked - and Harrison's successor, Mills E. Godwin Jr., relentlessly drove it to the next level.

Like Harrison, Godwin wanted a Virginia where education was a ``selling point.'' So, he created the community college system and raised appropriations to Virginia's colleges and universities by more than 100 percent. Godwin proudly proclaimed in 1970 that state general funds for public education then exceeded all general fund appropriations at the time he took office four years earlier. ``At every level of education,'' Godwin said, ``we abandoned completely the illusion that we could have high-quality instruction without a high level of financing.''

And what did Virginia get for all this spending? By the end of Godwin's term, about 60,000 new jobs - one-third more than the previous four years - and open doors to higher education for 44,000 more people. The commonwealth also gained a strong sense of confidence in itself, that it could make state government an instrument of progress.

That confidence carried Virginia forward. State expenditures were adjusted according to economic conditions, but each succeeding governor - Holton, Dalton, Robb and Baliles - accepted the basic premise of the consensus, that a strong economy required a strong commitment to education.

And so it has remained until today. But it could well change. Gov. George Allen does not mince words in expressing his disdain for his predecessors, their priorities and the General Assembly leadership. He challenges the prevailing consensus and calls for a ``revolution.''

Allen would restore Virginia's bottom-feeding status as a low-tax state. Gov. Allen claims that Virginia's taxes stifle economic growth, even when it's pointed out that Virginia's overall tax burden remains among the lowest in the nation. It is a broad and sweeping indictment, full of hot-button rhetoric. He sternly reminds voters that ``[i]n just the last 15 years, state spending has tripled.''

He's right, in part. From 1980 on, Virginia's government did grow - due in no small part to health-care demands and prison-building. But Virginia's population and economy grew quickly, too. During the 15-year span cited by Gov. Allen, Virginia's population rose by more than 1.2 million. Exports dramatically increased and economic growth was so great that if Virginia were a nation, its economy would be ranked 18th in the world.

And what about the claim that state taxes stifle growth? Through the '80s, under the same tax structure as today, new capital flooded into Virginia at a record pace. In one extraordinary period, from 1985 to 1988, Virginia's economy produced 334,200 new jobs. Foreign commercial interests alone invested more than $700 million in Virginia from 1986 to 1990.

Still, against all reason, Gov. Allen persists. He has blind-sided local government with his tax cuts and put funding for secondary education at risk. His $47 million in budget cuts to Virginia's colleges and universities will mean total losses of $500 million over the past five years. He would cut programs that have dramatically reduced the drop-out rate of students. And support for collateral-education efforts - special learning centers, museums and the Cooperative Extension Service - would be sharply reduced or eliminated.

All this is before the General Assembly at this moment. If embraced, the Allen agenda will largely repudiate the political consensus that has yielded economic progress for more than a quarter century. ``In the long run, Virginia's future rests on the twin pillars of jobs and education ... ,'' Gov. Godwin told the legislature 25 years ago. ``They alone will bring an end to our frustrations. They alone will give our people something to defend, rather than something to demand.''

We will see how well they are defended over the next few weeks.

Gordon C. Morse is a Williamsburg writer who served as special assistant to Gov. Gerald L. Baliles.



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